A REPORT ON

INCREASING MARKET PENETRATION OF

AMUL ICE CREAM THROUGH
MODERN Retailing IN WEST DELHI

Gujarat Cooperative Milk Marketing Federation Ltd.

PREPARED BY:
DEEPAK KUMAR SINGH
P/MN/R/09/186

A REPORT ON
 INCREASING MARKERT PENETRATION OF
AMUL ICE CREAM THROUGH
MODERN Retailing IN WEST DELHI

SUBMITTED TO:- PREPARED BY:-

PROF. NANDITA MISHRA DEEPAK KUMAR SINGH
P/MN/R/09/186

Gujarat Cooperative Milk Marketing Federation Ltd.

ACKNOWLEDGEMENT
The satisfaction that comes through the successful completion of any task would be incomplete
without mentioning the names of people who made it possible, because success is the epitome of
hard work & guidance. So with gratitude, I acknowledge all those guidance and encouragement
that served as a beacon of light and crowned my efforts with success so far.

I avail this opportunity to express with utmost sincerity my thanks to all the people of Gujarat
Cooperative Milk Marketing Federation Ltd. (GCMMF Ltd.). I am very much thankful to Shri.
JATINDRA KHURANA, SENIOR EXECUTIVE MANAGER, Sales, Amul, for giving me this
opportunity to undergo my summer internship in this prestigious organization and guiding me
throughout my project.

I am deeply grateful to my Market Guide Mr. PRASHANT GUHA, EXECUTIVE

MANAGER, SALES, Amul Ice cream, for his support, suggestions and enthusiasm which
helped me in the successful completion of this report and to have thorough knowledge of the
subject and its practical application.

This summer internship Project on the sales and Marketing in Amul is brought to fructification
through the help of my Faculty Guide Prof. NANDITA MISHRA. It was a great experience for
me working under the expert guidance of my college guide and employees of the organization.

Credit also goes to the entire sales team of Amul Ice Cream for their cooperation during Project
work. Each and every member whom I came across during this Project graciously took the time
to help and guide me in the findings. All of them helped me in better understanding of the Sales
Channel and most of the associated factors in the FMCG sector.

I am equally thankful to all those who have directly or indirectly helped in successful completion
of my Project.

TABLE OF CONTENTS
AUTHORIZATION

ACKNOWLEDGEMENT

ABSTRACT

1. INTRODUCTION
a) OBJECTIVE OF THE PROJECT
b) SCOPE OF THE PROJECT
c) LIMITATION OF THE PROJECT
d) METHODOLOGY
e) ICE CREAM MARKET
f) COMPETITORS
g) GCMMF LTD.
h) COMPANY PROFILE
i) AMUL ICE CREAM

2. SWOT ANALYSIS OF AMUL ICE CREAM

3. THE COMPETITIVE ADVANTAGE

4. DISTRIBUTION SYSTEM
a) DISTRIBUTORS OF AMUL IN DELHI
b) MARGIN BREAK UP

5. PROJECT AT GCMMF
a) HADF
b) RELIANCE FRESH

6. RETAILER SURVEY

7. CONSUMER SURVEY

8. FINDINGS

9. SUGGESTIONS

10. ANNEXURE

11. REFERENCES

INTRODUCTION
Objective of the project

1. To increase the sale of Amul ice cream in Reliance fresh

2. To find the competitive edge of the company over the competitors

3. Study of distribution channel

4. To analyze the retailers perception about Amul through retailers survey

5. To analyze the market share of Amul ice cream

6. Consumers survey to know their perception towards Amul ice cream

It can be helpful to company in following ways:-

1. Create brand equity of Amul ice cream

2. Create awareness among the retailer about the Amul ice cream business and benefits of
deep freezer which will lead to the penetration of Amul ice cream in the market

3. Consumer behavior study will help to acknowledge expectations of the consumers from the
market and their perception towards Amul ice cream

4. Help in strengthening its distribution network

5. Create new opportunities for the company to grow its market share

Scope of the Study:-

These days due to immense competition in India’s fastest moving consumer goods market my
work on GCMMF LTD. And consumer behavior can be useful in following ways:-

 It can be useful for adopting proper marketing mix to tackle competition

 It will help to know retailer satisfaction level towards their product

 It will help in grabbing further market share, which in turn will help in enhancing
business by increasing the sales volume

 It will help the company to let know if any further scope is left in the market or not, thus
saving organization’s precious resource like human resource, time and money

 It can further help the company to strengthen its presence amongst the people through
opening new APO’S inside and outside the city which contains only AMUL product’s
including ice cream.

 It will help the company to get advantage over their competitors by adopting new
strategies such as making new distributor’s, and supplying goods to the reliance fresh on
time and in right quantity

 It will help the company to increase its demand and supply by increasing customer
satisfaction level by rectifying customer complaints.

 It will help the company to know about its strength and weaknesses and its opportunities
and threats by adopting SWOT analysis

LIMITATIONS OF THE STUDY:-

  Area limits to West Delhi

 Some discrepancies due to random sampling method

 Some reliance fresh are difficult to locate due to non awareness of the location

 No sample is shown due to non perishable nature of the product

 Bad reputation of the Distributor taking replacement into consideration affects the
response of the store manager of a particular reliance fresh

 Bad reputation of the Distributor for not supplying goods on time affects the response of
the retailer

 Bad reputation of the Distributor for not supplying right quantity of products which were
ordered, affects the response of the store manager

 Nature of the market are different from each other

 Uncooperative nature of some retailer

Ice cream market:-

The ice cream market growth picked up after de-reservation of the sector in 1997. Of the total
size of Rs 15-16bn, around 30-32% is in the hands of organized sector valued at Rs 4.9bn, rest
all is with the unorganized sector. Among the major players in this industry, Mother Dairy has a
market share of around 51% in Delhi and NCR followed by Amul and Kwality walls and lastly
Cream bell and Vadilal are the players with low market share.

In rural areas, kulfis / ice creams made by small / cottage industry are popular. The market for
organized sector is restricted to large metropolitan cities. In small towns and villages, there are
thousands of small players who produce ice- creams / kulfis in their home backyard and cater to
the local market. Almost 40% of the ice creams sold in the country are consumed in the western
region with Mumbai being the main market, followed by 30% in the north and 20% in the south.

The Indian government adopted the policy of liberalization regarding the ice cream industry also
and it is since then that this sector has shown an annual growth ranging from 15- 20% per annum
for last 1-2 years. Ice Cream market will expand with increase in number of malls. Few years
consumers use to go out for walk after dinner and use to buy ice creams from hawkers. But now
consumer who often visit malls for entertainment prefer to buy ice creams during different times
of the day as it is visible upfront and feel like spending Rs. 50 for that tasty chocolate swirl with
cake and nuts. As marketers understand the different needs of consumers, be it health conscious
people, kids, youngsters, young etc, they are coming up with products specific for them. With a
portfolio of flavors, consumer today has plethora of options at hand to choose from and therefore
high probability of buying one more scoop of ice cream. Also with increasing wallet size and
innovative modern retail formats, it has definitely given a Philip to the cream industry in India.

Competitors in the industry:-

In Ice cream business, the major competitors of Amul are Mother dairy, Kwality Walls, Cream
Bell and Vadilal. Among these Mother Dairy and Kwality Walls are giving neck to neck
competition to Amul. But to stay ahead of the competition requires special efforts. Amul Ice
cream strategy of product differentiation is value created through quality of the offerings as well
as innovations in products

Mother Dairy:-

Mother Dairy was set up in 1974 under the Operation Flood Program in Delhi. It later expanded
in Mumbai, Punjab and eastern India. It is now a wholly owned company of National dairy
Development Board (NDDB) of India. Mother Dairy’s unique distribution network of bulk
Vending booths, retail outlets and mobile units give it a significant competitive advantage.
Mother Dairy Ice Creams launched in the year 1995, initially gave tough competition to Amul
and Kwality walls in the Delhi market. Now it has been showing a continuous growth over the
years, and today is in leading position in the market of Delhi & NCR.

Kwality walls:-

Kwality Walls, launched in 1995, is the company’s master brand for Ice cream. Kwality Walls
has combined state of art technical know-how of Unilever- the global leader in Ice cream-with
deep insight of the Indian market, to deliver a range of superior quality products under its
international brands. Key launches include Cornetto, Feast, Viennetta, and a range of Sundaes,
and also exciting eats for children specially, like Lime Punch or Sunshine Zing cone. Kwality
Walls ensures that while each of its offerings is unique in taste and flavor, they are also
accessible to more consumers through breakthrough cost reengineering and value delivery.

Vadilal:-

Vadilal is one of the leading manufacturers of Ice cream in India since 1920. Vadilal industries
are the flagship company of the group having primary interest in Ice cream and Processed foods.
With its manufacturing units located in Gujarat and Uttar Pradesh, Vadilal has its presence in the
states of Gujarat, Rajasthan, Uttar Pradesh and Madhya Pradesh.

Cream Bell:-

Launched in 2003 in North India, mainly in Delhi, Cream Bell Ice cream gained recognisation in
very short span of time and is among the top 5 brands of India. Cream Bell has its two
manufacturing units at Agra and Baddi, Himachal Pradesh. The product range, which was so far
present in Delhi, Punjab, Haryana and UP has now extended to Hyderabad and Goa. But it is still
trying hard to establish its market.

GCMMF:-
Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India.
It is a brand name managed by an apex cooperative organization, Gujarat Co-operative Milk
Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.7 million milk
producers in Gujarat, India.

AMUL is based in Anand town of Gujarat and has been a sterling example of a co-operative
organization's success in the long term. It is one of the best examples of co-operative
achievement in the developing world. "Anyone who has seen ... the dairy cooperatives in the
state of Gujarat, especially the highly successful one known as AMUL, will naturally wonder
what combination of influences and incentives is needed to multiply such a model a thousand
times over in developing regions everywhere. The Amul Pattern has established itself as a
uniquely appropriate model for rural development. Amul has spurred the White Revolution of
India, which has made India the largest producer of milk and milk products in the world. It is
also the world's biggest vegetarian cheese brand.

Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual
turnover of US $1325 million (2009-10). Currently Amul has 2.7 million producer members with
milk collection average of 10.21 million liters per day. Besides India, Amul has entered overseas
markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong
and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded,
but now it has fresh plans of flooding the Japanese markets. Other potential markets being
considered include Sri Lanka.

Dr Verghese Kurien, former chairman of the GCMMF, is recognized as the man behind the
success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the Banaskantha Union, was
elected chairman of GCMMF.

Amul was formally registered on December 14, 1946. The brand name Amul, sourced from the
Sanskrit word Amoolya, means priceless. It was suggested by a quality control expert in Anand.
Some cite the origin as an acronym to (Anand Milk Producers Union Limited).

The Amul revolution was started as awareness among the farmers. It grew and matured into a
protest movement that was channeled towards economic prosperity.

Introducing higher value products:-

Beginning with liquid milk, GCMMF enhanced the product mix through the progressive addition
of higher value products while maintaining the desired growth in existing products.

Despite competition in the high value dairy product segments from firms such as Hindustan
Lever , Nestle and Britannia, GCMMF ensures that the product mix and the sequence in which
Amul introduces its products is consistent with the core philosophy of providing milk at a basic,
affordable price.

Amul's product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate, ice
cream, cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others. In January
2006, Amul plans to launch India's first sports drink Stamina, which will be competing with
Coca Cola's PowerAde and PepsiCo's Gatorade.

In August 2007, Amul introduced Kool Koko, a chocolate milk brand extending its product
offeringt in the milk products segment. Other Amul brands are Amul Kool, a low calorie thirst
quenching drink; Masti Butter Milk; Kool Cafe, ready to drink coffee and India's first sports
drink Stamina.

Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation Marketing
Award for 2007.

The Distribution Network:-

Amul products are available in over 500,000 retail outlets across India through its network of
over 3,500 distributors. There are 47 depots with dry and cold warehouses to buffer inventory of
the entire range of products.

GCMMF transacts on an advance demand draft basis from its wholesale dealers instead of the
cheque system adopted by other major FMCG companies. This practice is consistent with
GCMMF's philosophy of maintaining cash transactions throughout the supply chain and it also
minimizes dumping.

Wholesale dealers carry inventory that is just adequate to take care of the transit time from the
branch warehouse to their premises. This just-in-time inventory strategy improves dealers' return
on investment (ROI). All GCMMF branches engage in route scheduling and have dedicated
vehicle operations.

MASCOT:-
Since 1967 Amul products' mascot has been the very recognizable "Amul baby" (a chubby butter
girl usually dressed in polka dotted dress) showing up on hoardings and product wrappers with
the equally recognizable tagline Utterly Butterly Delicious Amul. The mascot was first used for
Amul butter. But in recent years in a second wave of ad campaign for Amul products, she has
also been used for other product like ghee and milk.

Currently Amul is in the process of getting the Amul Girl registered as the oldest ad campaign in
the Guinness Book of World Records. Although there seems to be no competition for this
mascot, Amul Corporation is still doing further research to confirm their claim.

Company Profile:
Members: 13 district cooperative milk producers' Union
No. of Producer Members: 2.7 million
No. of Village Societies: 13,141
Total Milk handling capacity: 10.21 million liters per day
Milk collection (Total - 2009-10): 2.69 billion liters

Milk collection (Daily Average 2009-10): 7.4 million liters

Milk Drying Capacity: 626 Mts. per day

Cattle feed manufacturing Capacity: 3090 Mts per day

Amul Ice Cream:-

Gujarat Cooperative Milk marketing federation (GCMMF), one of India’s greatest success
stories with its AMUL brand is India’s largest food products marketing organization. It is a state
level apex body of milk cooperative in Gujarat which aims to provide remunerative returns to the
farmers and also serve the interest of consumers by providing quality products which are good
value for money. The biggest hit is not surprisingly the AMUL ice creams, which are expected to
contribute greatly to the turnover. With new products in almost every line being launched the
specific stress is on AMUL Ice creams. Time was when AMUL stood just for the chubby butter
girl. Now, the traditional milk-butter-cheese cooperative is switching to another growing
segment- that of health conscious adults with a sweet tooth and diabetics. As part of its market
expansion strategy, AMUL has ventured into a special range of ice creams and desserts low on
sugar and to go b add campaign, high on health dividends. AMUL marketing managers are
banking on their national sales network as well as local procurement of the milk and storage
capacity.

Amul Ice Cream was launched on 10th March, 1996 in Gujarat. The portfolio consisted of
impulse products like sticks, cones, cups as well as take home packs and institutional/catering
packs. Amul ice cream was launched on the platform of ‘Real Milk. Real Ice Cream’ given that
it is a milk company and the wholesomeness of its products gives it a competitive advantage.

In 1997, Amul ice creams entered Mumbai followed by Chennai in 1998 and Kolkata and Delhi
in 2002. Nationally it was rolled out across the country in 1999.

It has combated competition like Walls, Mother Dairy and achieved the No 1 position in the
country. This position was achieved in 2001 and it has continued to remain at the top.

Today the market share of Amul ice cream is 38% share against the 9% market share of
HUL, thus making it 4 times larger than its closest competitor.

Not only has it grown at a phenomenal rate but has added a vast variety of flavors to its ever
growing range. Currently it offers a selection of 220 products. Amul has always brought newness
in its products and the same applies for ice creams.

In January 2007, Amul introduced SUGAR FREE & Prolife Probiotic Wellness Ice Cream,
which was a first in India. This range of SUGAR FREE, LOW FAT Diabetic Delight & Prolife
Probiotic Wellness Ice Cream is created for the health conscious.

Says General Manager Marketing of Gujarat Cooperative Milk Marketing Federation (GCMMF)
R. S. Sodhi, "We want to make Amul an Rs 1,000-crore brand by 2010. This is why we’ve
expanded the market with a host of new launches and created brand new segments within ice-
creams."

Amul's strategy to grow in a difficult market this summer has been to offer international variety
at prices in tune with the Indian market. Sodhi claims Amul is up to 50 per cent cheaper than
other brands such as Kwality Walls. And the company is not pausing for breath but has begun
introducing a host of flavors this summer.
Fashioned on the super premium ice-cream range Dreyer TM, Ben & Jerry and Haagen-Dazs,
Amul's offering comes in 100 ml packs in several flavors such as Alphonso Mango, Date with
Honey, Fig, Cheese with Almonds and even Rajbhog!

Amul’s entry into ice creams is regarded as successful due to the large market share it was able
to capture within a short period of time – due to price differential, quality of products and of
course the brand name.

According to the Company, Amul Ice Creams are perceived as being superior to other Ice creams
based on creaminess, taste and price. This report tries to find out whether the consumers also
think in the same direction as the company wants them to think and if not then what could be the
reasons for the same as company has always banked upon providing the best quality Ice cream in
India.

SWOT ANALYSIS (AMUL):-

SWOT Analysis is a vital tool in order to judge the competitors and to analyze the position of the
company itself. Basically S.W.O.T. analysis refers to the Strength, Weakness, Opportunities and
Threats. Strength and weakness are the internal analysis of the firm; on the other hand
Opportunities and Threats are the external analysis of the firm.

Strengths:-

 Amul has well built image of excellence and innovation

 Biggest souring base for milk and milk products in India
 Quality of Ice cream is excellent and it doesn’t use any artificial items in making Ice
cream
 It has well logistic and distribution channel network
 It ensures that only cow and buffalo milk is used for making Ice cream by collecting milk
from cooperatives
 Abundant availability of milk
 High brand image of AMUL in the market
 Offerings new products to customers continuously
 Maximum share in take away home packs i.e. Bricks due to its lower pricing, many
flavors, economical pack sizes, and promotional schemes

Weakness:-

 Trade schemes and margin of some competitors like Mother dairy and Kwality walls are
better
 Unable to meet the market demand during peek season time
 No regular audit of the Distributor
 No training schedules for training to Distributor sales man
 Equal importance is not given by Distributors to all the Reliance fresh. They neglect
some of the Reliance fresh
 Over dependability on one distributor to supply goods to all the retailers and the Reliance
fresh is hampering the equal supply of goods in the market
 Image of Amul is being lost due to no timely supply of goods in the market
 Lagging much behind in Advertisement and Promotional activities
 Lack of dedicated vehicles for all the Reliance fresh

Opportunities:-
  There is a phenomenal scope for value addition in innovations in product development,
packaging and presentation
 By solving the replacement problem it can maximize the attention of retailers about
selling the products
 By increasing the production capacity, it can fulfill the demand during the peak season
 By increasing focus on impulse items, it can increase its market share
 By making one different distributor for only reliance fresh will help the company for
delivering goods on time and in right quantity

Threats:-

 Cut throat competition in the market

 Kwality walls product differentiation strategy has been very well received by the
consumer
 Kwality wall focuses more on advertisements. Recently, Mother dairy has also started
focusing on TV advertisements
 No flexibility in strategy
 The major competition is from push carts business of Mother dairy and Kwality walls
 Customers are not brand loyal in Ice cream industry

Distribution channel of Amul Ice cream:-

Total Number of Retail Outlets in Delhi: 2800

Total Number of Vending Carts in Delhi: 550

Total Number of Distributors in Delhi: 18

Distributors of Amul Ice Cream in Delhi:-

  Anshul Ent., Shastri park, Chander Nagar
 Paras Ent., Krishna Nagar
EAST  Amit Agencies, Unchepar
 Krishna Graphics, Geeta Colony

 Aashi Agencies, Rajouri Garden Ext.

 Keerty Agencies, Kirti Nagar
 Vee Kay Food and Beverages, Janakpuri
WEST  Jai Balaji Ent., Dwarka
 Bawa Narsimha Ent., Dwarka
 Shri Sai Traders, Prem nagar, Janakpuri

 Ansh Marketing, Lawrence Road, Industrial

Area
NORT  Moti Ram brothers, Rohini
 Mona milk point, Railway Road, Narela

 Shri Ram Agencies, Khanpur

 Aggarwal Brothers, Jangpura
SOUTH  Libra International, Sarita Vihar
 Goyal Agencies, Lado Sarai
 Deepak Ice Cube, Mehrauli

 Goyal Agencies, Ansari Road, Daryaganj

CENTRA

For the purpose of my project I was allotted area of West Delhi under Amul Ice Cream
Distributor Keerty Agencies. Few details about Keerty Agencies have been given below.
Address: 9/50 industrial area, Kirti nagar
Contact Person: Mr. V.K. Sethi
Contact Number: 9810524682
Area Covered: West Delhi
Number of Salesman: 4
No. of supply vehicles: 3
Total number of Reliance fresh: 22
Total number of retailers: 450
Average Daily Sales: Rs. 2 lac

Margin Break Up in Retail Outlets:-

Company
 Distributor (10% on billing)

Retailer (17.5% on MRP)

Customer

Margin Break Up in Reliance fresh:-

Company

Distributor (10% on billing)

Reliance fresh (15.5% on MRP)

Customer

Project at GCMMF:-

The project was about increasing the retail penetration of AMUL Ice cream in Reliance fresh by
visiting each and every Reliance fresh in the West Delhi and solving the customer complaints.
The task was to provide Retailers Deep Freezer under HADF (HAMARA APNA DEEP
FREEZER) scheme. Under this scheme Amul provides Deep Freezer to those retailers who agree
to sell Amul Ice-cream through their Retail outlet at a much lower cost as compared to market
price of same product if it is purchased directly through company. Also they are offered Free Ice-
cream coupons of which benefit they can get over a period of 4 Months against their purchase of
Ice-cream. These Freezers were to be sold to all the retail outlets. The project undertaken had an
objective of increasing the number of AMUL ice cream retail outlets under the HADF scheme
which will in turn help in increasing the presence of AMUL in Delhi. My job of increasing
penetration of Amul ice cream and selling deep freezer comes under the scheme was specific to
the area covered by one of AMUL Ice cream distributor KEERTY AGENCIES. AMUL was also
introducing its parlors under AMUL Preferred Outlets (APO) but these are very less in the Delhi
region.

Project dealt with a lot of data collection and applying different methodology to identify the
current market trend. It has been drawn from relevant facts and findings that AMUL Ice creams
have not yet penetrated on its market capitalization of AMUL butter or other dairy products.
AMUL has always banked upon its quality of the product and hence follow rigid promotional
methods. The project also helped to understand the distribution channel of AMUL, i.e., storage
facilities, how retailers grievance is tackled, replacement policy of AMUL Ice cream, cost
involved in transportation of Deep freezers as well as Ice cream, problem faced in distribution
etc.

Some facts had come up during my project and these facts can either be used as opportunities for
exploring and expanding the business as well as can be used as safeguards against threats by the
competitors. To prepare an effective marketing strategy, a company must study its competitors as
well as its actual and potential retailers. A company should have good relations with the
distributors and retailers. The company should adopt a flexible policy. Companies should
manage a good balance of dealers, retailers, consumers and competitor monitoring.

The project information will prove beneficial in taking proactive action for combating
competition. The standing of the company and its competitors in the minds of the retailers is a
vital factor in deciding the success of business. The study also aims at ranking of the company
and its competitor’s terms of certain parameter as adjusted by retailers. This information is a
good guide to management as it brings out the strength of the competitors and the areas where
the company need to improve. Thus the study was basically aimed at providing the management
desired vital information about the market situation.

Along with this my task was to study the retailer perception regarding Amul Ice-cream. This is
done through collecting their response through unstructured questionnaire, personal interview,
and observation.

Consumer perception towards Amul Ice-cream was studied through proper survey. A structured
questionnaire was prepared and survey was conducted on appropriate sample.
My area of operation was West Delhi and the areas that have been covered are west Punjabi
bagh, himadipur, multan nagar, paschim vihar, meerabagh, nagngloi sayyed, piragarhi, najafgarh
road, Kirti nagar, mansarovar garden, balinagar, inderpuri, pusa road, rohtak road, jhandewalan,
desh bandhu gupta road, ashok nagar, tilak nagar, khayala, Janakpuri (c1), Janakpuri (c2),
subhash nagar .list of Reliance fresh outlet was provided to us by the company. This list had
names and address of existing and past Reliance fresh outlets. Along with this new prospects
were found out in these areas and efforts were made to convert them into Amul retailers.

To place its products in the market the first and the foremost action AMUL initiated was
selection of outlets. It was detailed as well as comprehensive exercise that ensured that its
product reached every nook and corner of the market. The following framework was used to
identify outlets for its ice cream vending.

Selection of outlets:-

 Existing Ice cream outlets

 Amul A-class butter outlets
 Near schools, colleges, cinema halls, railway station, bus stands, shopping complex,
parks and tourist places.

HADF:-

Amul has tie-ups with deep refrigerator companies, Carrier, Voltas, Western and Haier. After
negotiation Amul is providing Deep freezers at lower price to the retailers (as compared to
prevailing market price) with extended warranty and various promotional schemes are
introduced to attract retailers and increase the cold distribution channel of Amul. They are
offered Free Ice-cream coupons of which benefit they can get over a period of 4 Months against
their purchase of Ice-cream.
In addition to this each individual outlet will be given promotional support in terms of:

 6*3 standard glow sign board

 Tailor made glow signs (10*3/15*3whenever required according to the location)
 6*3 standard signage (tin boards)
 Wall paintings
 Promotional posters

Why HADF?

The reasons behind the Company in promoting Amul Ice cream through HADF are:

 In security basis the complexity in operations are very high.

 As the deep freezer is the property of the retailer, he promotes the ice cream.
 A bond is created with the retailer which helps the company in promoting its future
products.
 It gives a platform to launch other products through its ice cream

Details of this scheme have been shown below:-

 AMUL PROFIT PLUS SCHEME for Sale of Deep Refrigerators

(All figures in Rs.)

Deep Special Retailers Benefits Net
Freezer’s Price for Discount on Free Ice Benefits on Special
Market Amul(B) Deep Cream Purchase Price
DF Size Supplier Price (A) Freezer MRP(D) (E=C+D) inclusive
(C=A-B) VAT
@12.5 %

300 ltr. Voltas 21,990 14,064 7,926 3,000* 10,926 16,074

Carrier 21,000 16,063 4,937 7,937 18,070

400 ltr. Voltas 26,290 19,687 6,603 4,000* 10,603 22,500

Carrier 25,000 22,849 2,151 6,151 25,705

Benefit of Free MRP Ice Cream

Month 300 ltr. 400 ltr. or
>
st
1 750 1000
2nd 750 1000
rd
3 750 1000
4th 750 1000
Total 3,000 4,000

1 Yr. Warranty on 300 ltr. & 5 Yr. Warranty on 400 ltr. Or Bigger Deep Freezer

Retailer will get four coupons for getting free MRP Ice Cream benefits as per the table.

Reliance fresh:-

Reliance Fresh a convenient store format is governed by the Mukesh Ambani and is the most
important part of Reliance Industries retail Business. Reliance Ltd. has planned to invest more
than Rs. 25000 crores in the retail division.
It also comprises more than 560 reliance fresh stores all over the country. The outlet sells fresh
fruits, staples, dairy products, fresh juice bars, groceries and vegetables. A distinctive Reliance
Fresh outlet is around 3000 to 4000 sq. feet and accommodates catchments area of one to three
Kilometers.

In my project I have to visit all the reliance fresh in West Delhi, which comes under the
distributorship of Keerty agencies. In my project I have to increase the penetration of Amul ice
cream in West Delhi by visiting the reliance fresh and dealing with them and convincing them to
purchase the products of Amul ice cream. I have to look after the order and the proper supply of
the products in all the reliance fresh. I also look after the complaints of a particular reliance fresh
and try to solve the problem.

Generally the problem which comes as a hindrance in the growth of the company is delay in the
supply of the product which was ordered by a particular reliance fresh. And supplying different
products from the given order.

So I have to look after the particular problem and insuring that it will not happen again in future.
I have to meet all the retailer complaints which help’s to increase the sales volume of Amul ice
cream and help us to stay ahead from our competitors.

This increases the retail penetration of Amul ice cream in West Delhi through modern retailing
which gives the boost to the growth of the company and increases its popularity among peoples.

RETAILER SURVEY:-

Objective: To know the retailer perception about Amul Ice Cream, i.e., what they feel about
the Price band, Margin, Distribution, Replacement policy, Promotional strategies, Packaging,
HADF Scheme and Ice Cream Business as whole.
Methodology:-

 Sample Size: 200 Amul Retailers were surveyed within my area of work.
 Questions were asked through a structured questionnaire.
 Only one rating was to be allotted on a scale of 1 to 5.

Limitations of the study:-

 Sample size may not depict the view of the entire Delhi Market.
 Sometimes the Retailers do not give exact responses.
 A few Retailers may have personal grudges against the Distributor

CONSUMER SURVEY:-

In this particular it was tried to find out what are the main factors that influenced the buying
behavior of the respondents. They were given factors like variety, brand loyalty, taste, occasion,
discounts and offers, convenient availability, and price range. They were asked to rate in terms of
importance i.e. how important is any one factor to them.
 1. Factors Affecting purchase decision of Ice Cream:-
(Analysis using Likert Scale)

When it comes to buying Ice Cream, the main factors which affect Buyer’s decision (in
accordance to their preference) in buying ice cream can be explained with the help of this.

Not at all Not so Somewhat Very

Neutral Total
important important important important

SCALING -2 -1 0 1 2

Variety offered 8 6 17 40 29 100

Brand loyalty 19 31 15 20 15 100

Taste 1 1 7 17 74 100

Occasion 23 22 24 17 14 100

Discounts & offers 4 10 10 50 26 100

Availability 6 11 21 31 31 100

Price range 5 10 19 35 31 100

Now we will multiply each score i.e. total number of response for each factor with the respective
scaling and find out the Likert Scale for each factor. The factor having maximum score will be
treated as most important.

Not at all Not so Somewhat Very Likert

Neutral Total
important important important important Score
SCALING -2 -1 0 1 2

Variety offered -16 -6 0 40 58 76 .76

Brand loyalty -38 -31 0 20 30 -19 -.19

Taste -2 -1 0 17 148 162 1.62

Occasion -46 -22 0 17 28 -23 -.23

Discounts & -8 -10 0 50 52 84 .84

offers

Availability -12 -11 0 31 62 70 .70

Price range -10 -10 0 35 62 77 .77

As per this it is clearly evident that taste is the main factor that influences the consumer buying
behavior with Likert Score of 1.62. When it comes to buying Ice Cream, the main factors which
affect Buyer’s decision (in accordance to their preference) are:

 Taste
 Discounts and Offers
 Price range.
 Factors affecting purchase decision
100 15 14
90 29 26 31 31
80 20 17
70 74
60 15 24 31
40 50 35 Very important
50
Somewhat important
40 31 22
21 Neutral
30 17 19
20 17 10 Not so important
6 19 23 10 11 10 Not at all important
10 8 7
1 4 6 5
0
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n er ilit an
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yo nd Oc s& va ice
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1. Now as we have analyzed in the previous question that TASTE is the main factor that buyers
considers most important while purchasing ice cream so let’s see what respondents have to
say about taste of various Brands.

  very bad bad neutral good very good

Amul 3% 13% 13% 44% 27%
Kwality 5% 9% 13% 23% 50%
Mother Dairy 3% 5% 18% 48% 26%
Cream Bell 15% 30% 26% 22% 7%
Vadilal 16% 22% 26% 32% 4%
 100% Taste 7% 4%

90% 27% 26%

22% 32%
80% 50%
70%
26% very good
60%
44% 48% 26% good
50% neutral
23% bad
40%
very bad
30%
30% 22%
13% 13%
20% 18%
13% 9% 15% 16%
10% 5%
3% 5% 3%
0%
Amul Kwality Mother Dairy Cream Bell Vadilal

Now as it is clear from the chart 50% of the respondents rated taste of Kwality Walls as very
good and 23% rated it as good that means 73% of the respondents liked the taste of Kwality
Walls. 27% rated Amul as very good and 44% rated it as good. So on total 71% liked the taste of
Amul. With 16% considered taste of Vadilal as very bad. In this Amul and Mother Dairy were at
lowest with only 3% rating each one as very bad.
 2. Rate the ice cream cup of different Brands.

  very bad bad neutral good very good

Amul 1% 4% 20% 44% 31%
Kwality 0% 5% 15% 49% 31%
Mother Dairy 0% 7% 15% 50% 28%
Cream Bell 7% 18% 39% 26% 10%
Vadilal 5% 18% 39% 30% 8%

Cup
100% 10% 8%
90% 31% 31% 28%
80% 26% 30%
70% very good
60% good
50% 44% 49% 50% 39% neutral
39%
40% bad
very bad
30%
20% 20% 15% 18% 18%
15%
10% 0% 0%
4%
1% 5% 7% 7% 5%
0%
Amul Kwality Mother Dairy Cream Bell Vadilal

In ice cream cups Amul and Kwality were at highest with 31% of respondents rating both of
them very good. At second it was Mother Dairy with 28% of respondents rating it as very good.
Especially Amul’s Rs 5 cup is very popular among people.
 3. Rate the ice cream cone of different Brands

  very bad bad neutral good very good

Amul 2% 1% 10% 56% 31%
Kwality 0% 2% 11% 32% 55%
Mother Dairy 4% 1% 20% 55% 20%
Cream Bell 2% 12% 50% 26% 10%
Vadilal 5% 8% 51% 27% 9%

100% 10% 9%
20%
90%
31%
80% 26% 27%
55%
70%

60% very good

55% good
50% neutral
56% bad
50% 51%
40% very bad
32%
30%

20% 20%
10% 11% 12% 8%
10% 0% 1%
1%
2% 2% 4% 2% 5%
0%
Amul Kwality Mother Dairy Cream Bell Vadilal

In cone Kwality walls leaded with 55% of respondents rating in favor of it. This clearly indicates
how effectively it has positioned its Cornetto cone. After that it was Amul with 31% respondents
rating it as very good.
 4. Rate the ice cream brick of different Brands

  very bad bad neutral good very good

Amul 0% 1% 12% 42% 45%
Kwality 0% 5% 13% 40% 42%
Mother Dairy 1% 4% 17% 48% 30%
Cream Bell 3% 16% 47% 24% 10%
Vadilal 4% 10% 43% 22% 21%

100% 10%
21%
90% 30%
45% 42% 24%
80%

70% 22%

60% very good

good
50% 48% neutral
47% bad
40% 40%
42% 43% very bad

30%

20%
13% 17%
16% 10%
10% 12%
0% 0%
5% 4% 3% 4%
1% 1%
0%
Amul Kwality Mother Dairy Cream Bell Vadilal

In bricks Amul leaded with 45% rating it as very good. One reason for this according to
respondents was that Amul’s Brick in 2 ltr pack which is cheaper than of its competitors and
better in quality. Kwality was very close with 42% rating it as very good.
 5. Rate the ice cream stick of different Brands

  very bad bad neutral good very good

Amul 4% 4% 14% 52% 26%
Kwality 1% 1% 18% 40% 40%
Mother Dairy 2% 8% 18% 43% 29%
Cream Bell 5% 19% 40% 24% 12%
Vadilal 8% 15% 36% 26% 15%

100% 12% 15%

90% 26% 29%
40%
80% 24%
26%
70%
very good
60%
good
52% 43%
50% 40% neutral
40% 36% bad
40%
very bad
30%
18%
20% 14% 19% 15%
18%
10% 4% 8% 8%
4% 1% 2% 5%
0%
Amul Kwality Mother Dairy Cream Bell Vadilal

In sticks again it was again Kwality taking the lead with 40% rating it as very good. It is
followed by Mother Dairy which has been rated by 29% as very good. Here Amul lacks with
only 26% rating it as very good and even 4% rating it as very bad.
 6. Rate the ice cream sundae of different Brands

  very bad bad neutral good very good

Amul 1% 2% 18% 51% 28%
Kwality 2% 1% 22% 33% 42%
Mother Dairy 2% 6% 35% 43% 14%
Cream Bell 2% 21% 51% 17% 9%
Vadilal 8% 16% 55% 15% 6%

100% 9% 6%
14%
28% 15%
17%
42%
80%
43%
60% very good
51% 55%
51% good
33% neutral
40%
bad
35% very bad
20% 22% 16%
18% 21%
2% 1% 6% 8%
1% 2% 2% 2%
0%
Amul Kwality Mother Dairy Cream Bell Vadilal

With 42% of the respondents rating as very good Kwality walls was at top in this list also. Amul
was at second with 28%. Amul’s sundae Swirl is being liked by people and also it’s Probiotic
and Sugar Free is also gaining acceptance among people. So this brings hope that Amul share in
this segment will increase.
Findings / General problems faced by the retailers and complain which are
the barriers for the expansion of Amul:-

 The majority of retailers think that deep freezer involve high initial investment. The
retailers were reluctant to invest amount in purchasing the Deep Freezers. They were
asking to purchase under Low Security. The Cream Bell and Kwality Walls are supplying
Deep Freezers at low security. Cream Bell is not giving Sales target but Kwality Walls is
giving sales target under low security schemes. Kwality walls are supplying Deep
freezers under security of Rs 5000(with Rs 4000 refundable) with sales target of one lakh
in eight months. There is huge demand of retailers for security and installment schemes
of Amul freezers.

 No claims or delay in claims. It was also observed the expired products were delivered to
the retailers. Some complained that they had a loss of two-three thousand rupees. But
some retailers were satisfied. It was observed depending upon the sales revenue from the
retailers, the replacement policy changed. But still Amul replacement was somewhat
better than Mother Dairy.

 Supply problem- all the variety which retailer wants is not provided. Retailer has to buy
the same from competitor. The retailers complained about the unavailability of all the
varieties of Amul Ice Cream. It was noted that Amul was not able to supply all the
varieties as per the demand of the retailer.

 No service of deep freezer. It was also found that many deep freezers had technical snags
and service personnel were late in rectifying them. There are cases in which they have not
provided the service even through the refrigerator was in the warranty period. This thing
is highly unacceptable as it can damage the image of the company.

 The Glow Sign boards were promised to the retailer at the time of booking the HADF.
They have still not reached there. Until now no new boards have been supplied this
season to any retailers. The same problem was faced by Mother dairy outlets. But
Kwality Walls has been very active in promotion through Boards and Hoardings.

 Some of the retailers were unsatisfied with Amul distribution. They ranked Mother Dairy
best in terms of Distribution. In some areas Mother Dairy supplied the products within
two three hours.

 Sometimes to so happen that the order that was given by the distributor and the product
delivered is not same as it was ordered.
 The ice cream that was supplied to the distributor is sometimes expired and as a result it
leads to the loss to the distributors.

 The presence of mother Dairy booths is the key reason why Mother Dairy is the market
leader in Milk Distribution in Delhi.

 High electricity cost- huge power bills. Ice cream is required to be kept in the temperature
“between” -18degree to -22degree. Thus it requires running of Deep Freezer
continuously. So it increases electricity bill for retailers

 Major factors that play a vital role in purchase of ice cream are:
1. Taste
2. Discounts and Offers
3. Price range
4. Variety offered
5. Response from friends and neighbors.

 Erratic supply of power in most parts of Delhi is one of the major factors that act as a
barrier for high growth in ice cream market.

 Although Amul has opened numerous outlets, it is seen that distributors are finding it
difficult to deliver. Supplies in the stipulated time which in turn leads to retailer
inconvenience. This has created a negative image in the mind of retailer.

 Certain big players like Nirulas, Baskin Robbins, and Mc Donald’s have built up their
own exclusive parlor and are giving a tough competition to ice cream maker like Amul.

 Push carts are making it difficult for retailer to do profitable business of ice cream as they
are giving them a direct competition. You will normally find these push carts in the areas
which are easily approachable by the customers.

 The Amul Retailers was replacement policy of expired products. Claims for damage ice
cream should be made fast as if not properly made it can lead to loss of retailer. Also
many retailers complained that their deep freezers were not repaired instead of repeated
complaints of its non functioning. But when I inquired about the cause it was discovered
that instead of ice cream many retailers kept cold drinks, milk, paneer etc in their freezer
due to which the compressor stopped functioning. So regular check of the condition of
Deep freezer should be made by the Sales man and the retailer should be taught not to
keep any item except Ice Cream and frozen products. Keeping other products result in
melting of the Ice Cream. Some of the retailers had made a loss because their Ice Creams
were melted due to electricity problem. In case power cut of more than 5 hours
arrangements must be done to pick that ice cream quickly as it may lead to damage of ice
cream leading to loss of both retailer and distributor.
 SUGGESTIONS:-

 Regular Distributor Visit: A regular visit to all the Distributors should be made by the
company officials to check the condition of all the supply vehicles so that proper delivery
of Ice Cream is made to the Retailers. It was observed that some of the supply vehicles of
the Distributor were not working properly and the supply was made on cartoon boxes
with Dry ice. Also most of the times supply was made on bikes and scooters due to which
many times retailer got melted stock. Also the delivery vehicles should be painted with
Amul products and its name as it creates Brand promotion also.

 Segmentation & Positioning: Amul should open exclusive Ice Cream parlors like
Baskin Robbins in Malls and posh markets to cover the high income group people. Mall
culture these days has increased. Lots of people visit malls daily either for shopping or
entertainment. So opening exclusive parlors at these places will definitely target those
people and will effectively position Brand among large income age group also. Image of
Amul is not a brand of fun loving people like Kwality Walls. We have seen in the
consumer survey analysis that Kwality lead from its competitor’s preference. Amul
should put more emphasis on the advertising the brand as a brand of youngsters. Amul
should do extensive advertising and should use all kinds of mediums for this purpose.

 Rewards to Good Retailers: Amul should give the rewards to the good retailers who are
giving good sales. The small retailers who are not giving good sales, Achievable targets
should be given and should be rewarded in terms of gifts on achieving the targets.

 Meeting customer complaints: If company can meet the customer complaints on time
and at regular basis then Amul can do better from its competitors and can capture more
market shares.

 Increase the man power: company should have to increase the man power to cover
more areas and more retailers which will increase the sale of Amul ice cream in peak
season.
 ANNEXURE:-

Retailer Questionnaire

Rate the following questions as

1- Bad, 2-Poor, 3-Average, 4-Good, 5-Excellent

1. The behavior Salesman towards you is

1 2 3 4 5

2. The price band of Amul Ice Cream is

1 2 3 4 5

3. The margin of Amul Ice Cream is

1 2 3 4 5

4. The distribution of Amul Ice Cream is

1 2 3 4 5

5. Replacement Policy of unsold and expired Amul Ice Cream is

1 2 3 4 5

6. The Promotional strategies of Amul Ice Cream is

1 2 3 4 5

7. The Packaging of Amul Ice Cream is

 1 2 3 4 5

Questionnaire for determining Mind Share, Brand Awareness and consumer buying behavior

towards Amul Ice Cream:

Questionnaire for Ice-cream preferences

Dear sir/madam,
I am student of INTERNATIONAL SCHOOL OF BUSINESS & MEDIA and am conducting
survey on various brands of ice-cream and consumer’s perception and behavior towards each
brand. So I kindly request you to help me by filling this questionnaire. I assure any information
provided by you will remain confidential.

SECTION-A

1. Name any one Brand of Ice-cream that comes to your mind________________________

2. Name few more Brands____________________________________________________

3. How often do you consume ice-cream:

Daily Once/Twice a week Once/Twice a month

occasionally

4. What are the place(s) from where you generally purchase:

Restaurant Vending Cart Retail stores Malls

5. Rank the brand of Ice-cream according to your preference (1= most preferred….5=least
Preferred)

Amul Kwality Walls Mother Dairy Cream Bell Vadilal`

6. Variant of Ice-cream you prefer (tick one):

Cone Brick Sticks Cup Sundae

7. Factors you consider while purchasing Ice-cream:

Factors Not at all Not so Indifferent Somewhat Very

Important Important Important Important
Variety Offered
Stick to any one
Brand
Taste
Occasion
Discounts and
Offers
Convenient
Availability
Price Range

8. Rate the Ice-cream Brands:

(5 – Very Good, 4 – Good, 3 – Neither Good nor Bad, 2 – Bad, 1 – Very Bad)

Factors Amul Kwality Mother Cream Bell Vadilal

Walls Dairy
Overall Quality
Taste
Availability
Product Range
Value for Money /
 Price
Packaging
Promotional offers

9. How would you rate the various brands of Ice-cream Variants?

Cup table:
Brands Very Good Good Neutral Bad Very Bad
Amul
Kwality Walls
Mother Dairy
Cream Bell
Vadilal

Cone table:
Brands Very Good Good Neutral Bad Very Bad
Amul
Kwality Walls
Mother Dairy
Cream Bell
Vadilal

Brick table:
Brands Very Good Good Neutral Bad Very Bad
Amul
Kwality Walls
Mother Dairy
Cream Bell
Vadilal

Stick table:
Brands Very Good Good Neutral Bad Very Bad
Amul
Kwality Walls
Mother Dairy
Cream Bell
Vadilal

Sundae table:
Brands Very Good Good Neutral Bad Very Bad
Amul
Kwality Walls
Mother Dairy
 Cream Bell
Vadilal

SECTION-B

10. Age (in years)

< 18 18-24 25-34 35-44 45-60 >60

11. Occupation

Student Self Employed Service House-Wife Retired

12. Gender

Male Female

13. Monthly Income Of Family (in Rupees)

< 50,000 50,000-80,000 80,000-150,000 150,000-3, 00,000

< 3, 00,000
14. No. of Adult Members in Family__________________________

No. of Children in Family__________________________

Age group of Children: (Specify the number in box below)

0-5 5-10 10-15

Respondent’s Name:

Respondent’s Location:

Phone No. (Optional)

Name of Interviewer:
DEEPAK KR. SINGH
 REFRENCES

1. Manuals provided by company.

2. www.amul.coop

3. Marketing Management, 14th edition, By Philip Kotler.

4. Company records.

5. Distributor records.

6. www.google.com

7. www.scribd.com

8. www.infoline.com
 EXECUTIVE SUMMARY

Name : DEEPAK KUMAR SINGH

Enrollment No : P/MN/R/09/186

Mobile No : 09748447610

E-Mail : deepak_014@yahoo.co.in

Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India.
It is a brand name managed by an apex cooperative organization, Gujarat Co-operative Milk
Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.7 million milk
producers in Gujarat, India.

Project Title: Increase Retail Penetration for Amul Ice-cream through

modern retailing in West Delhi.

The final report is based on the project undertaken at Gujrat Cooperative Milk Marketing
Federation Limited for my Summer Internship Programme. The project deals with increasing
penetration of Amul Ice Cream in West Delhi. The crux of the entire project was to increase the
market share of Amul Ice cream under the scheme of HADF. My task was to increase sale of
Amul Ice cream in West Delhi under Amul Ice Cream distributor KEERTY AGENCIES. Project
undertaken at Amul as part of Sip provided an oppurtunity to gain an insight into the consumer’s
mind, so that this experience could be used to achieve the overall aim of the organization, i,e to
attain the maximam market share.

This project involves Retailer and Consumer Survey. Through consumer survey I tried to find
out the Mind Share and Brand Awareness of Amul Ice Cream. Retailer Survey helped to find out
what are the problems that retailers are facing from distributors end, from market and their view
on Amul Ice Cream. Project dealt with a lot of data collection and applying different
methodology to identify the current market trend. It has been drawn from relevant facts and
findings that AMUL Ice creams have not yet penetrated on its market capitalization of AMUL
butter or other dairy products. AMUL has always banked upon its quality of the product and
hence follow rigid promotional methods. The project also helped to understand the distribution
channel of AMUL, i.e., storage facilities, how retailers grievance is tackled, replacement policy
of AMUL Ice cream, cost involved in transportation of Deep freezers as well as Ice cream,
problem faced in distribution etc.
Some facts had come up during my project and these facts can either be used as opportunities for
exploring and expanding the business as well as can be used as safeguards against threats by the
competitors. To prepare an effective marketing strategy, a company must study its competitors as
well as its actual and potential retailers. A company should have good relations with the
distributors and retailers. The company should adopt a flexible policy. Companies should
manage a good balance of dealers, retailers, consumers and competitor monitoring.